InCapta Inc (INCT)

[bigpimpin]

Simple and Wick,

I agree that revenues will continue to go up.

I see some expenses maybe decreasing. Consulting for example as I think some of that related to the website upgrade.

I see expenses also increasing. More DCs, more overhead and more advertising.

Therefore, I just don't think we get there this year unless we see a significant increase in subs. I don't mean an increase to 40K subs. I mean a lot more than that.

Simple I see your point on careful analysis of the P&L, but I'm also talking about cash flow. Granted they will not need to dilute as much as they will start to generate cash flow, but either way you slice it they will not be generating enough cash flow to cover expenses until next year.

All this being said, I don't think the company is in trouble. I just think they need to take a closer look at reduction of expenses. Of course a big piece of that is SGA and we all know the largest piece of that.

The reason I did my analysis which I can send you both if you want was because I had it in mind that breakeven could happen in the 3rd or 4th quarter. After looking at it I think it is 1st or 2nd quarter of next year.

Now if JF signs a couple more big deals the sub count might shoot up, but expenses will increase as well. The sub count might be enough to overcome all this.

I'm looking forward to the 2nd quarter numbers to get a better understanding of the expenses. I do not expect a huge jump in revenues, but revs are not my concern at this point.

Let me know your thoughts..